This paper identifies key issues surrounding the advisability and practicality of adopting "target zones" for the exchange rates of major currencies. Pour fundamental questions concerning the definition of and the rationale for target zones are addressed: first, what is generally meant by a...

We study why high-priced acquisitions of entrants by an incumbent do not necessarily stimulate more innovation and entry in an industry (like that of digital platforms) where customers face switching costs and enjoy network externalities. The prospect of an acquisition by the incumbent platform...

This book aims to bind together latest theories on creation of innovative clusters and operating modalities, empirical analysis, and several new formal models describing cluster formation and dynamics. Another objective of the book is the analysis of the role of the innovative activities on the...

In modern cities firms must observe local zoning regulations in regard to their locations. In this chapter we first review the literature on the economic effects of legal restrictions on firms' locations in a linear city. A common assumption in research on zoning is that firms maximize their own...

In modelling spatial economic interactions such as embodied in the movements of people and goods, the study area is usually subdivided into geographic units, i.e. zones, to represent the origin, destination and any stop-over locations. In most cases, model precision tends to improve as the study...

This study analyzes optimal zoning policy in a duopolistic spatial competition framework for both circular and linear spaces. A regulator is introduced in the third stage of the price-location game through a welfare function to model zoning preferences from firms and consumers. An equilibrium...